“The first quarter of 2024 was another successful one for Sandbox, generating record revenue of US$2.7 million, an increase of more than 40% over last quarter,” said John Armstong, CEO of Sandbox. “Cash flow from operations, before changes in non-cash working capital, also increased quarter on quarter by more than 100% to $1.8 million in Q1, positioning us for a very strong 2024 and on pace to exceed guidance. Given the strength of our financial results, we elected to voluntarily repay US$7.5 million on our revolving credit facility in Q1 and US$1.0 million after quarter-end, bringing total repayments to nearly US$15 million since the initial drawdown in October 2023. We remain well capitalized with almost US$19 million of available credit plus a US$15 million accordion feature on our revolving credit facility. Our efforts to continue to grow the Company through the acquisition of new royalty and streaming assets continue apace and we remain confident in our ability to grow aggressively in short order.”
First Quarter 2024 Financial Highlights
Generated Revenues of US$2.7 million;
Cash Flow from Operating Activities, before changes in non-cash working capital of US$1.8 million;
Net Income before finance expense, taxation and depletion of US$1.7 million; and
Utilized excess cash balance and free cash flow from operating activities to voluntarily reduce indebtedness by US$7.5 million, in addition to US$6.3 million repayment in Q4 2023.
Portfolio Highlights
Greenstone Gold Mine (1.26% Gold stream)
Equinox Gold continues to report that the Greenstone mine is progressing towards commercial production in the third quarter of 2024 and announced its inaugural gold pour of 1,800 gold ounces on May 23. Additionally, on May 13 Equinox announced the closing of its acquisition of the remaining 40% of the Greenstone mine from Orion Mine Finance Management LP for US$995 million.
As per the gold purchase agreement, Sandbox has been receiving monthly gold deliveries since November 2023, at the minimum amount of 350 ounces per month (Sandbox’s 70% share). The gold is payable from any of Equinox’s operating mines.
Mercedes Mine (2% NSR)
During the first quarter of 2024, the Mercedes mine produced 12,228 gold ounces and 44,040 silver ounces from 109,280 tonnes of ore. Bear Creek explained in their April 17, 2024 news release that Q1 2024 production results were positively impacted by increased gold grades and robust development. The average gold grade of ore processed increased to 3.69 gpt in Q1 2024 from 3.30 gpt in Q4 2023 and an average of 2.77 gpt over the full 2023 financial year. Development totaled 2,780 meters during the quarter, which is largely in line with the notably improved development in Q4 2023 and over three times the development meters accomplished in Q1 2023. Increasing development meters, which results in more working faces, has been a key component of Bear Creek’s multi-faceted strategy to improve Mercedes’ production.
Blackwater Mine (0.21% NSR)
On April 24, 2024, Artemis Gold issued a news release stating that the project remains fully funded, within the initial guidance for capital expenditure, and on schedule for the first gold pour in H2 2024. At March 31, 2024, overall construction was approximately 73% complete and approximately C$523 million of the guided initial capital expenditure of C$730 to C$750 million had been spent. By the end of Q1 2024, Artemis Gold had entered into contractual commitments for C$682 million (or 93% of the lower end of the guided initial capital expenditure). The majority of uncommitted expenditures relate to owners’ cost and earthworks associated with mining pre-strip and construction of the tailings storage facility and other civil structures.
Sandbox intends to provide an update to shareholders and details regarding the financial results for the second quarter of 2024 in late August.
For more information about Sandbox Royalties, please visit our website at
www.sandboxroyalties.com
General inquiries email: info@sandboxroyalties.com |
